Hangyang (002430) 2019 Interim Report Comments： Stable Performance and Increased Gas Production to Continue Expansion
Hangyang (002430) 2019 Interim Report Comments: Stable Performance and Increased Gas Production to Continue Expansion
Matters: The company released its 2019 Interim Report and achieved an operating income of 40.
74 ppm, a 10-year increase of 10.
82%, net profit attributable to mothers3.
99 ppm, an increase of 18 years.
03%, deducted non-net profit attributable to mother 3.
69 ppm, an increase of 15 in ten years.
Net cash flow from operating activities 4.
99 ‰, a decrease of 9 per year.
Comment: Gas investment continues to advance, retail gas prices decline, and barrier-free companies 重庆耍耍网 continue to report growth, with the company’s gas business achieving revenue22.
47 ppm, a ten-year increase of 8.
23%, gross margin of gas business 19.
99%, a decline of 3 per year.
The competition for gas investment projects in the first half of the year was fierce, and the company made full use of its advantages to obtain multiple gas investment projects: additional investment to acquire 2 sets of 40,000m3 / h construction projects under construction in Guangxi Shenglong, supporting 40,000m3 / h of Laiwu SteelAir separation project and Qingdao Xinen gas supply project.
Gas projects under construction are progressing in an orderly manner: Shanxi Hangyang Phase II 65,000m3 / h air separation project, Henan Hangyang Phase III 30,000m3 / h air separation project, Pinggang Hangyang Phase II 20,000m3 / h air separation project, and Jiangxi HangzhouOxygen 2 sets of 80,000m3 / h air separation projects are progressing steadily.
The company perfected the stable supply of pipeline gas, expanded it, increased the production and sales of liquid products, increased the gas sales volume, and maintained better profitability of the gas business.
In the first half of the year, the decline in the gross profit margin of the gas business was initially due to the decrease in retail gas prices over the same period last year.
Increasing demand for coal chemical and petrochemical equipment drove equipment business income and the number of orders growth reports, and the company’s air separation equipment realized revenue16.
28 ppm, an increase of 17 in ten years.
Gross profit margin of air separation equipment 21.
66%, a decrease of 0 every year.
With the company’s R & D advancement in the equipment field and technological advancement, the competitiveness of equipment products continues to increase.
In the first half of the year, the company successfully obtained orders for 4 sets of 100,000m3 / h air separation equipment from ZPEC Phase II, China Coal Tuoke 75,000m3 / h air separation equipment, and Henan Xinlianxin 80,000m3 / h air separation equipment.In terms of petrochemical equipment, the company continued to plow the equipment and process package markets such as ethylene cold box, light hydrocarbon recovery device, CO / H2 separation device, natural gas purification device, etc., which enriched the petrochemical product system and broadened the application fields of the company’s products.
In the first half of the year, the parent company signed new orders for air separation and petrochemical equipment29.
31 ppm, a small increase in one year.
The period expenses are well controlled, and the company whose scale effect reveals the report, the company period expenses total3.
8.3 billion, with an expense ratio of 9.
4%, a decline of 0 per year.
Among them, sales / management / R & D / financial expenses are 0.
US $ 4.1 billion, with a slight increase in management expenses. Sales, R & D, and financial expenses have continued to decline. Internal management efficiency has increased. The scale effect has initially shown with revenue growth. Earnings forecasts, estimates and investment ratings.
We maintain our expectation that the company will achieve net profit attributable to mothers in 2019-2021.
500 million, EPS 0.
19 yuan, corresponding to PE 15, 13 and 11 times.
The gas business of the short-term company is affected by the gas price cycle, but the gas infrastructure is continuously promoted in the long term. The gas business throughput continues to increase, with both cycle and growth, giving a PE error of 20 times and maintaining a target price of 18.
68 yuan, maintaining the “recommended” level.
Risk warning: Gas project advances more than expected, and retail gas prices fluctuate.